More money in bank: Family pension for PSB staff raised to 30% of last pay, NPS contribution raised

The Finance Ministry has taken a big decision regarding the family pension of bank employees. The family of a deceased bank employee will now get 30% of the last salary as a pension. Finance Minister Nirmala Sitharaman attended the meeting for an annual performance review of public sector banks (PSBs) in Mumbai today. She met the heads of all 12 public sector banks. Addressing the media after this meeting, the Finance Minister has made a big announcement regarding the pension of bank employees.

According to this announcement, if a bank employee dies, then his/her family will get 30% of the last salary as a family pension. Earlier the family pension in such cases was Rs 9,284. Now the family of banking employees can get a pension up to a maximum of Rs 35,000.

Contribution for employee pensions under NPS hiked

Debashish Panda, secretary, department of financial services, also said that the contribution for employee pensions under NPS is hiked to 14% from 10% earlier.

“Pension payouts to bank employees could increase to Rs 30,000-35,000 from the earlier cap of Rs 9,284. PSBs’ contribution for employee pensions under NPS hiked to 14% from 10% earlier,” said DFS Secretary.

Proposal for enhancement of family pension and employer’s contribution under the NPS is approved by FM. The benefits would now accrue to family pensioners

Cap on pay is removed and uniform slab of 30% will be in force. Pension can go as high as ₹ 35000 –@DFS_India Secretary pic.twitter.com/STJhP803tv

— PIB in Maharashtra 🇮🇳 (@PIBMumbai) August 25, 2021

In the annual performance review, Sitharaman also raised her concerns over the piling up of deposits in the states of eastern India, for which she stated that the credit too needs to be expanded.

“Banks have been asked to create state-wise plans for the North East focusing on logistics, exports from the area,” the finance minister said.

She stated that the industries have the option of raising funds even from outside the banking sector in today’s time. Even banks are raising funds through various avenues. These new aspects need to be studied to target credit where it is needed, she said.